| Asset | Current | Target | Drift | Action |
|---|
When should you rebalance? Most financial planners recommend rebalancing when any asset class drifts more than 5 percentage points from its target — for example, if your target is 60% stocks and it reaches 65% or falls to 55%. Annual rebalancing is a common schedule; some investors rebalance quarterly. More frequent rebalancing increases transaction costs without proportionally improving outcomes.
How the rebalancing calculator works
Portfolio rebalancing is the process of restoring your target asset allocation after market movements have shifted it. If your target is 60% stocks and 40% bonds, a bull market might push stocks to 70% — leaving you with more risk than you intended. Rebalancing sells the overweight asset and buys the underweight one to restore the original mix.
This calculator takes your current holdings (in dollar values) and your target allocation (in percentages) and shows exactly how much to buy or sell of each asset to return to your target. The drift column shows how far each asset has moved from its target — the trigger for rebalancing is typically when any single asset drifts more than 5 percentage points.
How to use this calculator
- Enter each asset class and its current dollar value — stocks, bonds, cash, crypto, international, etc.
- Set your target percentage for each asset. Target percentages must total 100%.
- Click Calculate to see which assets are overweight (sell), underweight (buy), or on target (hold).
- Use the presets to load common portfolio templates as a starting point.
Not sure what your target allocation should be? Take the asset allocation quiz first, then come back here to rebalance toward that target.